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Erosion of monopoly power by call-back. Lessons from Hong Kong

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  • Lam, Pun-Lee

Abstract

As Hong Kong Telecommunications International (HKTI) has been granted an exclusive licence to provide an international call service which does not expire until 2006, the Hong Kong Government could only pledge to open up the international facsimile and data services under the new WTO agreement. However, the exclusive licence does not really insulate HKTI from market competition brought about by technological developments. Evidence in Hong Kong has shown that the price differential between outgoing and incoming calls need not be so large before call-back operators are attracted to the business. Institutional arrangements have also allowed the prices of call-back services in Hong Kong to be well below the settlement rates. The competitive pressure exerted by call-back services has been understated by many analysts.

Suggested Citation

  • Lam, Pun-Lee, 1997. "Erosion of monopoly power by call-back. Lessons from Hong Kong," Telecommunications Policy, Elsevier, vol. 21(8), pages 693-695, October.
    • Handle: RePEc:eee:telpol:v:21:y:1997:i:8:p:693-695
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    Cited by:

    1. Basalisco, Bruno, 2012. "The effect of user interaction on the demand for mobile text messages: Evidence from cross-country data," Information Economics and Policy, Elsevier, vol. 24(2), pages 132-144.
    2. Wen-Chung Guo & Fu-Chuan Lai & Chorng-Jian Liu & Chao-Cheng Mai, 2012. "Symbiotic Production and Downstream Market Competition," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 40(3), pages 329-340, September.
    3. Martha Garcia-Murillo, 2003. "Assessing The Impact Of Internet Telephony On The Deployment Of Telecommunications Infrastructure," Working Papers 03-04, NET Institute, revised Feb 2004.

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